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This New Bill Could Give 50,000 Combat Veterans Thousands More a Year in Benefits

A new bill seeks to change laws around payments for combat-injured veterans.

By Paige Cerulli , Edited by Andrea Basse

Updated Oct. 10, 2026

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A new bill could allow veterans to collect both military retirement pay and VA disability pay, helping them get ahead financially. The Combat Veterans Retirement Restoration Act, introduced by Representative Victoria Spartz on September 16, is designed to support combat-disabled veterans who had to retire before they completed 20 years of military service.

Here's what you should know about the act, what it seeks to change, and how it might affect you.

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The current rule regarding military retirement pay and VA disability compensation

Under current rules, many veterans who are medically retired but who have completed less than 20 years of service are required to forfeit part of their military retirement pay or VA disability compensation while receiving the other benefit. If veterans are able to reach 20 years of service, they're generally allowed to receive both benefits. If that 20-year mark isn't reached, military retirement pay is usually reduced if a veteran also receives VA disability compensation.

That situation often penalizes veterans who are forced to retire because of injuries sustained in combat. They earn their retirement pay through their years of military service, and VA disability payments help compensate veterans for injuries or illnesses sustained during that service. If an injury ends a veteran's ability to serve early, the veteran may lose thousands of dollars a year.

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The Combat Veterans Retirement Restoration Act

The Combat Veterans Retirement Restoration Act would change that law. It would allow veterans who were forced to medically retire before completing 20 years of service to receive their earned military retired pay and VA disability compensation.

"Combat veterans forced to medically retire because of their injuries should not lose retirement benefits simply because they could not reach 20 years of service," said Spartz. "This targeted fix honors our commitment to those who sacrificed in defense of our nation."

Who the bill would help

This bill could help combat-injured veterans who were medically retired due to those disabilities. It would be helpful for veterans who receive VA disability compensation but who weren't able to complete their 20 years of service.

By allowing veterans to receive both benefits, even if they weren't able to complete their 20-year service requirement, the bill may help boost veterans' financial security and retirement income.

About 50,000 veterans are currently affected by the offset and might benefit from the bill.

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The uphill battle around cost

Financially supporting combat-injured veterans might seem like a cause that everyone may naturally support, but the bill comes with a hefty financial cost. Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, explained that combat-injured veterans may lose their careers and part of their retirement income, but he believes that whether the bill passes may come down to its cost.

Ryan estimates that the changes the bill would implement could cost $11 billion.

Additional similar proposals around veterans' benefits

Congress also faces several similar proposals centered around veterans' benefits. The Major Richard Star Act would let military retired combat-injured veterans receive military retirement pay and VA disability benefits without facing a penalty. That bill has bipartisan support, and several versions have been submitted to Congress for consideration.

The Department of Veterans Affairs is implementing the PACT Act to expand health care and benefits for certain veterans. The PACT Act extends VA health care eligibility to veterans with toxic exposures and to veterans of the Vietnam, Gulf War, and post-9/11 periods. It adds more than 20 presumptive conditions for burn pits, Agent Orange, and toxic exposures, and it requires the VA to provide a toxic exposure screening to every veteran in VA health care.

Additionally, veterans groups and Congressional members have debated implementing changes to VA disability ratings. Those proposed updates center around conditions like tinnitus and sleep apnea. For example, the rating criteria for sleep apnea would be based on responsiveness to treatment, and tinnitus would no longer be rated as its own condition. Compensation for some veterans might be reduced if those changes were implemented.

The status of the Combat Veterans Retirement Restoration Act

The bill is in the earliest state and is currently in committee. No cosponsors have come forward at this time. The cost of implementing the bill might be a significant obstacle to its passage, but be sure to monitor this bill if you or a loved one are a veteran, active-duty military, or considering enrolling in the military.

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Bottom line

The Combat Veterans Retirement Restoration Act has only recently been introduced and has not been enacted, so affected veterans shouldn't expect any change to their payments at this time. This bill is worth watching, though, so consider using websites like Congress.gov or GovTrack.us to monitor its progress. You may also want to contact your House representative and senator to encourage them to support the bill.

If the bill passes, it might have a significant financial impact on combat-injured veterans. If your military retirement pay is reduced because of your VA disability compensation, the bill might change that, helping you grow your wealth.

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